HSBC will “significantly reduce” its use of tax havens, the bank’s chairman,
Douglas Flint, has said.

Speaking at the bank’s annual shareholder meeting, Mr Flint revealed that the use of offshore tax havens was being reviewed in light of increased public scrutiny of the issue. He conceded that the use of these financial centres had got a “bad name”.

“Given that it started getting a flavour to it, we need to reflect very carefully and scrutinise anything we’re involved with, anything that our customers are involved with, and decide whether that is appropriate going forward,” he said.

Mr Flint added: “I would think generally these options of being involved with tax havens will reduce.”

HSBC has been accused of helping customers avoid tax through Switzerland and Jersey, as well as other offshore financial centres.

This month, the bank said it was considering selling its private banking business in Monaco and had received “unsolicited expressions of interest” for the unit.

More than 50 businesses have been offloaded by HSBC since Stuart Gulliver took over as chief executive in 2011 and launched a restructuring programme.

The bank’s confirmation that it is reviewing its use of tax havens follows a similar move by Lloyds Banking Group, which revealed at its shareholder meeting earlier this month that it would be shutting down several subsidiaries based in offshore jurisdictions for tax purposes.

Barclays has already closed down its highly-lucrative structured capital markets business, which advised the bank’s wealthiest clients on how to minimise their tax bills.

The moves come amid an increased crackdown by Western governments on tax avoidance by the rich.

Britain, the US and Germany have all used tax records acquired from whistleblowers to go after the assets of wealthy citizens who have avoided local taxes.